BUSINESS LAW

DISHONOUR OF CHEQUE BOUNCING OF CHEQUE. CONSEQUENCES OF BOUNCING CHEQUE.

BY SHAKUNTHALA .M.C 10MCM10026

BUSINESS LAW Dishonour of cheque bouncing of cheque. Consequences of bouncing cheque

BY: GOPI RIBA 10MCM10011

BUSINESS LAW
DISHONOUR OF CHEQUE BOUNCING OF CHEQUE. CONSEQUENCES OF BOUNCING

CHEQUE

BY PARVATHI .C 10MCM10020

CHEQUE
A Cheque is a negotiable instrument instructing a financial institution to pay a specific amount from a specified transactional account held in the drawers name with that institution. Both the drawer and payee may be natural persons or legal entites. Cheques are order instruments, and are not in general payable simply to the bearer but must be paid to the payee.

BUSINESS LAW

DISHONOUR OF CHEQUE BOUNCING OF CHEQUE. CONSEQUENCES OF BOUNCING

CHEQUE

BY SARASWATHI.R 10MCM10025

DISHONOUR OF CHEQUE BOUNCING OF CHEQUE. CONSEQUENCES OF BOUNCING CHEQUE

DISHONOURED CHEQUE

A Dishonoured cheque is a cheque that is not credited by a bank under numerous of reasons. Reasons may be such as insufficient funds in the account, signature mismatch etc.,

TYPES
Dishonour of negotiable instruments may be of two kinds:

Dishonour by non-acceptance. Dishonour by non-payment is said to be dishonoured.

REASONS FOR DISHONOURED CHEQUES

Payment countermanded. Insufficiency of funds Non-applicability of funds. Improper presentation. Stale cheque. Insolvency. Post-dated cheque.

BOUNCING OF A CHEQUE
Not enough funds in the account to pay the cheque. Signature of cheque issuer does not match with the signature in the cheque. Cheque has expired.

CONSEQUENCES OF CHEQUE
The cheque writer may be charged a fee by his/her own financial institution. If paying the item puts the account holder in a negative status in a relatively small amount,the bank may choose the honour of the cheque. If a dishonoured cheque has been scanned by the a substitute check, the original cheque is not returned to depositor.

LEGAL REMEDY
Contact the party personally and ascertain the reason of the bouncing of the cheque. In case the party gives you another cheque which also bounces then lodge a complaint in the court of magistrate. Case is filed under the Section-138 of the amendment Negotiable instrument Act.

CONCLUSION
Though there is a legal remedy arising of cheque is still in process. The Act do not permit alternate method of realization of the amount due to the complaint on the cheque being dishonoured. There is no denying that this provision has done away with the rigorous and time consuming methods of criminal law.

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